Oil prices slide on profit-taking, but supply risks support

By Keith Wallis
SINGAPORE, Nov 4 (Reuters) - Oil prices slipped in thin
trading on Wednesday as investors took profits from the previous
session's rally, while potential supply disruptions in the
United States, Brazil and Libya curbed losses.
Brent futures for December delivery LCOc1 had fallen 4
cents to $50.50 at barrel by 0215 GMT, after ending the last
session up $1.75, or 3.6 percent.
U.S. crude for December delivery CLc1 dropped 2 cents to
$47.88 a barrel, after closing up $1.76, or 3.8 percent. Earlier
on Wednesday, it hit its highest since Oct. 13 at $48.36.
"(Investors are) taking short-term positions after a good
rally," said Michael McCarthy, chief market strategist at
Sydney's CMC Markets.
Prices were expected to slide further later in the day
although they will remain range-bound, McCarthy added.
"A year-end recovery in commodity prices remains unlikely
with a stronger dollar and continued weak Chinese economic
data," ANZ said in a research note on Wednesday.
While there were no major supply disruptions, a strike at
Brazil's state-run oil producer Petroleo Brasileiro SA
PETR4.SA and the closure of the Libyan oil export terminal at
Zueitina provided some support to prices, McCarthy said.
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The Petrobras strike, which has slowed daily oil output by
around 25 percent in the world's ninth biggest oil producer,
helped fuel the rally in prices in the previous session.
But a likely build in U.S. crude inventories last week
weighed on sentiment.
Crude stocks rose by an estimated 2.8 million barrels in the
week to Oct. 30 to 479.9 million, data from industry group the
American Petroleum Institute showed on Tuesday. API/S
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Official inventory data from the U.S. Department of Energy's
Energy Information Administration will be released later on
Wednesday. {EIA/S]
Investors are also keeping an eye on manufacturing data from
China, Japan and the eurozone later on Wednesday.